List of companies with fair profit margins and trading at a concession to book value
A business with a low PBV ratio and a high ROE can make a good investment for a variety of reasons.
A company trading below its book value means that the company’s market capitalization (the value of its outstanding shares) is lower than its book value (the value of the company’s assets minus liabilities). If a company is trading below its book value, it means that the market value of its assets is less than the balance sheet value. This could mean that the market is undervaluing the company's assets or that the assets are not as valuable as stated on the balance sheet.
ROE (Return on equity) is a measure of a company’s profitability that indicates how much profit a company generates for each Rupee of equity. A company with a fair ROE indicates that the management is generating a decent return on the shareholder’s equity while trading below book value means that the market is undervaluing the company’s assets.
As a result, a company with a fair ROE that is trading below book value might offer a good investment opportunity, provided that the underlying causes of the undervaluation are found and evaluated. There are some potential causes of a corporation trading below its book value like Temporary market conditions, Poor financial performance, Asset impairment, and Debt burden.
Here is the list of companies with Fair profit margin and trading at a concession to book value: